Last week’s high: C$1.7196
Last week’s low: C$1.6926
Pound Rebounds on Upbeat Brexit Outlook
The Pound to Canadian Dollar exchange rate got off to a strong start last week, due to some broad Brexit optimism following upbeat remarks from the UK’s Brexit minister Dominic Raab and German Chancellor Angela Merkel on the chances of a deal still being reached.
This helped Sterling to bounce back from the previous week’s losses, and opened the door to further gains in the middle of the week on the back of some robust UK retail data.
However the pairing fell back in the latter half of the week as the Canadian Dollar surged following optimism that the US and Canada may be close to reaching an agreement in NAFTA renegotiations.
These gains were then bolstered on Friday as Canada’s GDP figures came in higher-than-expected in July.
CAD Outlook: Slowing UK Private Sector Growth to Weaken Sterling?
Looking ahead, the Pound could come under pressure in the first half of this week’s session with the publication of the UK’s latest PMI figures. Economists currently forecast growth will have continued to slow across the UK’s private sector last month.
Meanwhile the focus for CAD investors this week will be the release of Canada’s latest labour figures, with the Canadian Dollar potentially strengthening if the unemployment rate falls back below 6% as forecast.
09:30 UK Manufacturing PMI (Sep)
14:30 CA Manufacturing PMI (Sep)
09:30 UK Construction PMI (Sep)
09:30 UK Services PMI (Sep)
15:00 CA Ivey PMI (Sep)
08:30 UK Halifax House Price Index (Sep)
13:30 CA Trade Balance (Aug)
13:30 CA Unemployment Rate (Sep)
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